Rent and the Local Housing Allowance rates
We guarantee the rent at the Local Housing Allowance (LHA) rate to landlords on the scheme. The purpose of this is to ensure we provide affordable housing to customers we are trying to help.
The rent can be topped up by the tenant or council
*Note that the LHA rate is capped at the 4-bed rate, so any property larger than this will only receive this amount.
1-month rent bonus (LHA)
The scheme also rewards landlords with a one-off joining bonus worth 1 month's rent (LHA) upon the signing of an assured shorthold tenancy.
How rent is paid
The rent is paid by the tenant via Universal Credit or Housing Benefit. The tenant can arrange for the rent to go directly from Universal Credit/Housing Benefit to the landlord each month.
The rent is paid in arrears, meaning a landlord will receive the rent the month after a tenant signs the AST. For example, if a tenant moved in on 12 August 2021, the first rent payment would be paid on 12 September 2021. If the tenant is employed, or does not receive full benefits, they pay the remainder of rent to the landlord each month via bank transfer.
Unpaid rent
If the tenant fails to pay their rent or accrues arrears, the council helps the tenant to apply for a Discretionary Housing Payment (DHP) to help make the payment. If approved, the DHP is paid directly to the landlord to clear any rent arrears.
If further rent arrears occur after a DHP has been awarded or if the DHP is unsuccessful, the council guarantees the rent to the landlord. This is paid via bank transfer.
Rent guarantee for the length of the scheme
The scheme runs for 12-24 months per property, which means the rent guarantee is in place for this length of time. At the end of the contract with the council, we would hope that the landlord and tenant have built a good relationship so the tenancy continues on. However this is a decision that is made with the landlord and tenant. A landlord cannot replace the tenant with the aim of securing another 12-24 months of guaranteed rent. After this period, the council no longer guarantees the rent.
Let's Rent Coventry
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